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Calculate the Consumption Beta for an Asset with a Variance 0.15 0.15

Question 39

Multiple Choice

Calculate the consumption beta for an asset with a variance of 10%,where the variance of consumption growth is 15% and the covariance between the growth rate in consumption and the asset is 20%.


A) 0.15 0.15
B) 1.00 1.00
C) 1.25 1.25
D) 1.33 1.33

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